Apple, a Quick Options Strategy

Apple, options, options ebook, bull put, vertical spread

Apple, options, options ebook, bull put, vertical spreadGraphically, Apple is well set up, and despite earnings between a month (for this reason a "quick strategy"), you can also set up a very quiet operation that gives a return of 8-10% (not bad for just a month that the strategy is in the market).

As I said, I like the graphics setting. Apple went to close the gap which was formed on August 2 in the area $ 150.00, and from here it seems to want to resume climbing. Implied volatility is fairly high and higher than the historical one. My idea is to sell a Bull Put, and I would position with the option in the sale, to be quieter, below the dynamic support (blue line). You can see the chart below (clicking on the image for enlarging).

Apple, options, options ebook, bull put, vertical spread


Bull Put so constructed, I sell a Put option Strike 142 expiring on October 20 (I use a weekly expiration, but the volumes are good the same) and I cover by purchasing a Put option strike 140. The Delta of the sold option is -0.105. You can see the strategy set on the Interactive Brokers platform below.

Apple, options, options ebook, bull put, vertical spread


The strategy gives a maximum loss of $ 200 minus the premium cashed. As for the entrance, I will do it with more stakes, so to mediate the entry price. If for example, I want to enter into 3 contracts, I will not do it with all 3 contracts at one time, but at different prices ever higher.

In this specific case, with three contracts, I would put three orders with as prices 0.18, 0.22 and 0.25. Obvious that making so, is likely that not all three orders are will be executed, but in the long run, this strategy will give me higher gains than entering with all the contracts at once and, above all, at mid-point.


Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest